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Knowledge Economic City (KEC) began preliminary designs for its new “Down Town” project after completing the required feasibility study, the company said in a bourse filing on Sunday.
“The first phase is expected to cost SAR 2.2 billion, while the entire project will be implemented in three years,” KEC added.
The company aims to begin groundworks in Q4 2019 and start construction next year.
The new development will be built on a total space of 129,000 square meters, of which 77,000 sqm will be allocated for the mall and boulevard. The project’s commercial leasable area stands at 122,000 sqm.
Down Town project aims to develop KEC’s commercial market and luxury unit, located near Haramain Rail station, Prince Mohammad bin Abdulaziz International Airport and other strategic locations in Madinah.
On March 20, KEC’s board of directors approved to set up a special purpose vehicle (SPV) between KEC and other strategic investors to build the project.
The Saudi-listed company will contribute the land plot required, along with a cash amount to be determined later on, the statement added.
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